Crude At $175? Oil Traders Stress Test The Future -- Financial Times
Oil at $175 a barrel; copper at $12,000 a tonne and corn at $10 a bushel. As commodity prices rally, the world’s largest trading houses have been busy ‘stress testing’ to be sure their finances can withstand a “super spike”.
The levels are not a forecast – indeed, executives tell me they do not expect such hefty prices – but do signal a “worse case scenario” for which oil, metals and food commodities traders need to prepare.
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My Comment: If oil hits $175 a barrel, prepare for a rush from countries like China and India to secure supplies .... and the tensions and insecurity that it will produce.
But is such a scenario possible .... hmmmm .... I guess that is why traders are looking at this country and the possibilities of unrest breaking out in its oil producing regions.